Centre for Entrepreneurial Management and Innovation 1 How do Australia’s universities engage with entrepreneurship and small business? How do Australia’s universities engage with entrepreneurship and small business? Paper prepared in conjunction with the Small Enterprise Association of Australia and New Zealand C o ns u l ti n g R e se a r ch CEMI Discussion Paper 1401 T r a i n i ng Tim Mazzarol S u pp o r t s a le s s t a f f in g s u pp o r t Centre for Entrepreneurial Management and Innovation | www.cemi.com.au Centre for Entrepreneurial Management and Innovation 2 How do Australia’s universities engage with entrepreneurship and small business? Centre for Entrepreneurial Management and Innovation Phone: +618 6488-3981 Fax: +618 6488-1072 Email: [email protected] General Inquiries: Email: [email protected] Website: www.cemi.com.au CEMI Discussion Paper Series ISSN 1448-2541 Discussion Paper 1401 © Copyright Tim Mazzarol 2014 Discussion Papers should not be reproduced without attribution to the author(s) as the source of the material. Attribution for this paper should be: Mazzarol, T. (2014) “How do Australia’s universities engage with entrepreneurship and small business?” CEMI Discussion Paper Series, DP 1401, Centre for Entrepreneurial Management and Innovation, www.cemi.com.au NOTE: This paper has been prepared in conjunction with the Small Enterprise Association of Australia and New Zealand (SEAANZ) www.seaanz.org Centre for Entrepreneurial Management and Innovation | www.cemi.com.au Centre for Entrepreneurial Management and Innovation 3 How do Australia’s universities engage with entrepreneurship and small business? HOW DO AUSTRALIA’S UNIVERSITIES ENGAGE WITH ENTREPRENEURSHIP AND SMALL BUSINESS? Tim Mazzarol, University of Western Australia ([email protected]) ABSTRACT Small to medium enterprises (SMEs) comprise the majority of businesses in the Australian economy. Most are run by owner-managers who have little formal education in business and their level of innovation remains low. Universities offer the potential to enhance both the management skills and competencies of small business owner-managers, and the innovativeness of their firms. This study examines the level of engagement with SMEs by Australia’s universities through a study of their education, research and industry outreach programs as viewed through their website information. The findings show that most universities offer courses in the fields of entrepreneurship and innovation, with some also focusing on small business management. Most of these courses are offered via undergraduate or postgraduate degree programs as individual units or areas of specialisation. Several have specialist degrees in the field of entrepreneurship. Around 21% of Australia’s universities have dedicated centres in entrepreneurship or small business that undertake research and in some cases management education or outreach programs. Others have research centres that undertake research with a relevance to SMEs, and there are also some research programs or groups that conduct studies into SMEs and entrepreneurship. A smaller number have well-designed industry outreach programs targeting SMEs and entrepreneurs. Overall, while Australia’s universities are fairly active in teaching and researching the fields of entrepreneurship, innovation and small business, their level of engagement with SMEs remains limited and is focused on a relatively small number of institutions. In general the “hands on” engagement by academics with SMEs is not a strategic priority within most institutions. Key words: universities, entrepreneurship, small business, education, research. INTRODUCTION Australia’s small business sector is a major part of the national economy. Small to medium enterprises (SMEs), which may be defined as those with fewer than 200 employees, comprise around 99% of all businesses in Australia (OECD, 2010a). The majority of these firms have no employees other than the owner-manager. According to the Australian Bureau of Statistics (ABS) there were just over 2 million small business operators in Australia in 2012. They were operating their businesses across a wide range of industry sectors and the majority had been in business for more than 10 years (ABS, 2013). This reflects the fact that the majority of SMEs are not entrepreneurial start-ups, but well-established business ventures that serve as the foundation of commercial activity throughout the economy. It is also worth noting that in 2011 the majority of these small business operators had not attended university with only 17% reporting that they had a bachelor’s degree. Most had qualifications from vocational education and training (VET) sources. This included around 29.4% with Certificate Level qualifications, and 10.2% with Diploma or Advanced Diploma level qualifications (ABS, 2013). Centre for Entrepreneurial Management and Innovation | www.cemi.com.au Centre for Entrepreneurial Management and Innovation 4 How do Australia’s universities engage with entrepreneurship and small business? The most common qualifications held by small business operators are in the field “engineering and related technologies” (approximately 14%), or management and commerce (ABS, 2013). These areas of qualification would potentially benefit from advanced levels of education. In particular the need to enhance the overall level of innovation within Australia’s SME sector. This suggests a potential disconnection between the small business community and the higher education sector in Australia. The consequences of this disconnection have the potential to impact on the overall productivity of the Australian economy. For example, a study by the Productivity Commission and ABS of competition, innovation and productivity in Australian businesses found relationships between firm size and innovation, and innovation and export activity (Soames and Brunker, 2011). Using ABS longitudinal business data, the study found that export behaviour was strongly and positively associated with innovation. Although the challenges of entering export markets was particularly demanding for innovators. Larger firms were found to be significantly more likely than their smaller counterparts to innovate. The study also discovered a positive relationship between innovation and firm productivity. Small firms that do not innovate were identified as having about a 17% probability of experiencing a decline in productivity. Small manufacturing firms that did innovate were predicted to have a 34% probability of experiencing productivity improvements, while the forecasted rate for goods and services firms was estimated at around 43% (Soames and Brunker, 2011). Overall the pattern that emerges from this research is the need to enhance the level of innovation within the SME sector. Universities can potentially play a key role in this, and may do so through both education and research activity. This report examines the level of engagement by Australian universities with small businesses and discusses the nature and consequences of this. AIMS AND METHODOLOGY To understand the nature of university engagement with small business owner-managers and the wider community of entrepreneurs we undertook a review of the websites of all Australian universities. Our search process was guided by three research questions: 1. What education programs do Australia’s universities offer, at all levels (e.g. vocational, undergraduate, postgraduate and executive outreach), that relate to entrepreneurs and small business owner-managers? 2. Which universities have research centres or programs targeted specifically at the study of entrepreneurship and small business? 3. How accessible are these education and research programs for entrepreneurs and small business owner-managers? All 39 universities were examined via their websites. Our approach was to assume that we were small business owner-managers or entrepreneurs seeking to engage with the universities for either education or collaborative research. Key words were typed into their website search engines such as “entrepreneurship”, “small business management”, “small business”, “small business research” and “entrepreneurship research”. Areas within the websites that dealt with courses and degree programs were also searched. This included a more refined search of the academic handbooks down to a unit by unit level. In relation to research, we also examined the website’s research section and used key words to identify any research centres, programs or individual academics. Many sites had features on “research strengths”, Centre for Entrepreneurial Management and Innovation | www.cemi.com.au Centre for Entrepreneurial Management and Innovation 5 How do Australia’s universities engage with entrepreneurship and small business? “research centres and programs”, or “find an expert”. These provided an additional means of identifying the available information. A series of institutional profiles have been provided in the appendix of this document, with some selected contacts. It should be noted that the data provided here was sourced from the university’s websites and it is therefore possible that more activities and programs are taking place within these institutions than is reported here. All care has been taken to ensure the accuracy of this information, but due to the vast amount of activity that takes place within a modern university there can be omissions. For this we apologise in advance. WHY IS UNIVERSITY ENGAGEMENT WITH SMALL BUSINESS IMPORTANT? The